EC charging costs for mediation

As eniquitous as it sounds, Cl.25 of the NSW Strata Schemes Management Act provides for Executive Committee Members to be paid for services performed for the Owners Corporation where that’s in accordance with resolution passed at a General Meeting.

So provided the services have been performed (i.e. not an undertaking) and they’re properly documented, then YES payment that in my opinion should be as a reimbursement of expenses incurred can be made if the O/C so determines by a majority vote.

I would not be automatically suspicious of reimbursement of EC members’ expenses. You probably have a line in the budget for gardening and an EC member might find it quicker and easier on some occasions to buy certain supplies for the common property gardening from their own pocket. If they keep the receipt and arrange for reimbursement through the treasurer and/or managing agent, I would think that is appropriate if the expense was an appropriate gardening expense. I would expect that cost to then be assigned to the gardening line of the budget. 

Ditto for costs associated with a website for the OC. Perhaps easier to pay personally and get reimbursed. As long as the expenses are assigned to the right lines of the budget and reasonable and appropriate etc then it is probably just pragmatic rather than dodgy. Only worry if the treasurer can’t give a reasonable account of things (after giving reasonable notice so they can give a good answer. Don’t ambush the probably honest volunteer treasurer at the AGM). 

supersleuth —

Jimmy T said……the payments that aren’t allowed are for those for future work done.

……which mirrors my more oblique reference in post #2 to a permitted reimbursement for works performed and not for an “undertaking” to do so.

Peter C is also correct by observing that while it may be in some circumstances quicker and easier for a committee member to purchase something like a bag of lawn food and to have that expense reimbursed, it MUST be accompanied by a sales receipt, be booked to an appropriate account such as “gardening supplies” where sufficient budgeted funds must exist, and be used on the Common Property of the Scheme and not on any lot owner’s property.

A reimbursement of that type would not come under Cl.25 as it’s not a payment for work performed by an E/C Member as part of their role of say, Secretary. So prior consent via a resolution at a General Meeting would not be required, although some limitations on the amounts and types of such expenditures that may be in future permitted would be an apropriate resolution at your upcoming AGM in my opinion.

That’s a lot of prerequisites, which is why for those same reasons of quickness, ease, and one more that I’d add of transparency, I’ve never encouraged it or permitted any catch-all accounts such as “sundry expenses” and “general maintenance” in the Scheme that I was managing.

My concern is that we used to have an independent gardener & then the Secretary starting dating a landscape gardener & now we don’t. Every so often we have an expense of a few hundred dollars for “gardening products”..

Will the new strata laws address this?

@supersleuth said:
Also in relation to this… The EC has a budget of $7,000 which allows them to use without having to go to the OC for repairs etc. Is this the same?  

You do want the EC to have a budget for repairs so things can be repaired promptly without having to wait for a general meeting. Indeed, if the repair is serious enough, I would say they are obliged to fix it promptly even if it means going over budget. If the money has been spent but the EC does not seem to have repaired anything, then you worry.

Actually, don’t worry immediately. Just talk to the treasurer and ask nicely. Most likely all can be explained if you give him/her a chance to look back over the accounts and get back to you with a good answer.